Anh Tuan Dang

Type of the article: Research Article

Abstract
This study investigates the linear and nonlinear effects of ownership structure and financial leverage on corporate financial risk in Vietnam. Using panel data from publicly listed non-financial companies from 2014 to 2023, the analysis applies pooled, random-effects, and fixed-effects logit models, along with robustness checks based on linear probability and feasible generalized least squares estimations. The results reveal that financial leverage significantly raises the risk of financial distress, emphasizing the importance of capital structure in risk assessment. State ownership shows a nonlinear relationship with financial risk, with evidence suggesting a U-shaped pattern that becomes more evident in alternative model specifications. Conversely, institutional ownership and managerial ownership do not show statistically significant effects, indicating limited governance influence of these ownership types in the Vietnamese setting. Among control variables, profitability correlates with lower financial risk, while asset tangibility has a positive relationship; other firm characteristics do not display consistent impacts across models. These findings add to the literature by highlighting the role of ownership structure and leverage in influencing financial risk within institutional constraints. Policy-wise, the results suggest that firms should implement cautious leverage strategies, and regulators should carefully manage state ownership to balance its potential advantages and drawbacks.

Type of the article: Research Article

In the evolving landscape of ASEAN capital markets, environmental, social, and governance (ESG) disclosure is increasingly recognized as a strategic driver of corporate value, with competitive advantage determining the extent to which its benefits are realized. This study aims to examine how competitive advantage moderates the relationship between ESG disclosure and firm value in the ASEAN emergent context. The study applies panel data comprising 2,801 observations from 726 listed companies in ASEAN during 2015-2023. Regression analysis was conducted using the two-step System Generalized Method of Moments, accompanied by a series of robustness tests. The findings emphasize ESG reporting benefits, as ESG disclosure positively influences all firm value proxies in baseline models (β_{ESG_Tobin’sQ} = 0.0034, p-value < 0.05; β_{ESG_LogMC} = 0.0040, p-value < 0.01; β_{ESG_PB} = 0.0047, p-value < 0.05). The interaction between ESG disclosure and competitive advantage is also positive and significant across the three measures (β_{ESGxCA_Tobin’sQ} = 0.0545, p-value < 0.05; β_{ESGxCA_LogMC} = 0.0254, p-value < 0.01; β_{ESGxCA_PB} = 0.0678, p-value < 0.01). These results suggest that the valuation implications of ESG disclosure are contingent on firms’ competitive advantage, with the estimated marginal effect generally increasing as competitive advantage improves. Accordingly, the study enriches the literature by resonating with the intersection between stakeholder theory and the resource-based view (RBV), demonstrating how competitive advantage conditions the link between ESG disclosure and firm value in ASEAN capital markets. The study suggests that managers should align financial objectives with stakeholder expectations and integrate ESG disclosure into broader corporate strategies to enhance valuation purposes.